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Insurers are taking different approaches to adopt Environmental, Social, and Governance (ESG) measures into their strategies.

What are the steps that the industry has taken in adopting these measures and how do reinsurance leaders play a role?

Bringing Consumers Along on The Transition Path
In industries such as the burning of thermal coal, insurers typically distinguish between "writing new business," which can happen sooner, and "ceasing to renew existing business," which may take a little longer. Both regulators and insurers concur that in the case of these businesses, insurers must make sure that they in some way take their consumers along and develop a transition path with them. This plan may also entail giving clients advice on how to raise their ESG profile.

Developing New Standards
By developing standards for screening and assessing risks according to an ESG rating, insurers and reinsurers have improved their own underwriting portfolio. Subsequently, there is also an aim to reduce risks with a negative ESG profile and to strengthen those with a more favourable profile, such as risks associated with renewable energy.

Phasing Out Assets with Poor ESG
In terms of assets, insurers and reinsurers follow a similar strategy – first, analysing their own portfolio based on a set of ESG criteria and then gradually phase out assets with a poor ESG profile while increasing investments in assets with a better profile.

Impact On the Regional Markets
As announced by international insurers and reinsurers, changing carbon footprint and setting goals for carbon neutrality have an impact on the ASEAN insurance markets as well. While subsidiaries of international insurers must adhere to the group’s standards on carbon emissions, national and regional insurers have also managed their footprint by setting targets and defining roadmaps to achieve these goals.

As the world evolves, technology has found its significant role in many industries, insurance being one of them. The difficulties society faces in the areas of the environment, society, and government are becoming more complicated. The insurance business must participate in tackling these difficulties as a manager of risk and cannot simply stand by.

Reinsurers such as Malaysian Re play a key role in shaping the industry as they help to stabilize insurers should there be any loss experience by distributing specific risks. Additionally, MNRB, as the parent company of Malaysian Re, boasts an extensive business portfolio across Asia and the Middle East. The institution plays a key role in managing sustainability risks and managing ESG issues, as they help distribute particular risks among insurers by helping them stabilise in the event of a loss. Visit the MNRB website https://www.mnrb.com.my/ to learn more about other MNRB businesses related reinsurance, retakaful, retail takaful and more.

There is an estimation of 324 Takaful operators around the world. In terms of direct takaful, Saudi Arabia has the largest General Takaful market while Malaysia has the most extensive Family Takaful market. Malaysia is considered one of the main retakaful markets in Southeast Asia, along with Indonesia and Brunei.

Growth of the Global Takaful Market

The global takaful sector is one of the segments of the insurance market that is expanding the fastest, with an average annual growth rate of between 15-20%. Following the remarkable expansion of the Islamic financial system, particularly in the Islamic banking industry and Islamic capital market, there is an increasing demand for takaful products on a global scale.

The expansion of both sectors helped the takaful and retakaful industries to grow healthily. For instance, there is a logical demand for mortgage protection takaful covers given the significant expansion of Islamic financing and mortgages.

Growth Of Malaysia’s Takaful Market

The Malaysia Takaful Association reports that the family takaful business in Malaysia has experienced double-digit growth. In the nine months that ended on September 30, 2020, the value of family takaful protection climbed 14% to RM364.2 billion thanks to RM4.84 billion in new business contributions, an increase of 3.2% from the same time in 2019.

Over the years, the demand for Family Takaful has grown significantly. When compared to the same period in 2019, the general takaful business had a respectable gain of 3.6%, with total gross contributions of RM2.57 billion as opposed to RM2.48 billion. With a share of 65.3%, motor takaful outlasted the largest business category. With a gross contribution of RM450 million, or a little rise of 3.2%, fire takaful maintained its place as the second-largest business class.

Limitations faced by the Retakaful and Retrotakaful Market

However, there is only a small amount of retrotakaful capability accessible at this point in development. Due to a lack of supply in the market, takaful operators on the Shariah Advisory Board are expected to permit retakaful/retrotakaful capacity to be supplied from conventional players on the basis of dharura (utmost necessity).

Malaysian Re, through its Malaysian Re Retakaful Division (MRRD), is licensed by the Ministry of Finance to carry on both life and general retakaful activity. By extending the Shariah-compliant supply chain to domestic and overseas takaful operators, it was established to supplement Malaysian Re's traditional reinsurance operations. It makes use of Malaysian Re's best underwriting procedures, which include appropriate pricing models and tools, sound rating disciplines, and actuarial evaluations. For more information, visit https://www.malaysian-re.com.my/our-solutions/retakaful.

A family staycation is a perfect chance to treat yourself and your family, giving you all a break from reality and our day-to-day responsibilities, to rejuvenate our mind and body, and to see and feel a different environment for our sanity's sake.

You can let your hair down. There is no need to worry about cleaning the house whenever your children make a mess as there is room services to handle that. At least for a few days, you are worry-free on matters of cooking, laundry and to-do-list as a mother and housewife. All you need to do is just focus on the break and rest as much as you can during staycation.

Staycation also reduces the traveling time. Have fun being a tourist at your hometown. You can pack lightly and reduce the cost on airplane and airport transfers. You just need to go to any hotel for a staycation by driving your own vehicle. Most of the hotels provides free parking within their premises too.

Anyway, it is every mom’s concerns to check on the places to go for holiday that will suits her family and children. Whether the hotel is suitable for children, whethere there have any children pool, no smoking rooms, and if possible, connecting room for the children. Also do note that not all hotels are child-friendly. So here are few tips to plan a staycation with your family and children:

Choose a hotel that caters to your little ones

When scouting for a hotel, not only scout for the best deals, you must also check on child-friendly hotel or family-friendly hotel from beds and amenities to children activities. If you have extra budget, you can go for a hotel that offers spacious rooms, with extra amenities such as baby cots, bottle warmers, and stroller. Some hotels also offer exciting activities for children such as children’s yoga, rock climbing, and cooking class. This is to ensure you and your children will have a good staycation experience.

Make sure all items and belongings are well-packed

With the little troops I have (5 children between 2 to almost 12-years old) packing can be an overwhelming task. But when packing for a hotel staycation, the list become less as most hotels provides toiletries and basic amenities such as towels, hair dryers and iron. So all you need to do is just pack important things that are not easy to get such as medication and diapers. Also don’t forget the children swimming suits if they love to splash in the swimming pools. I'm actually very glad that I'm at the phase where my older 3 children can pack their own clothes when we go for our family holiday!

Stock up on some healthy snacks close to you

This is to avoid the typical tantrums, hunger meltdowns or crankiness in the younger ones. You can stock up on nuts, biscuits, or raisins as well. It easy to carry and perfect to control a little hunger pangs. Some hotel also provides snacks in their freezer, but it is better if you prepare ahead. I usually stock some in my diaper bag and some in one of my child's backpack (as we might be split into 2 groups while walking around hence, the backup hahah)

Include ‘me time’ and time with your spouse

Staycation is the perfect opportunity to spend quality time with your spouse or partner. Beside getting some rest from daily responsibilities, this is the time to recharge your romantic battery. Get the children busy with activities, or get the babysitting and childcare services under your staycation hotel for a few hours. You and spouse can get some much needed alone time together.

Of course for now, it is still impossible to have a staycation because we are still under MCO. Sigh.... But heyyyyyy, for our neighbouring country, Singapore, they can enjoy Staycation Singapore! Not only that, there is also promotion on hotels by Traveloka.

Do go check out their campaign Singapore Rediscovers Vouchers for more interesting offers and tips on attractions and hotels!

That’s all for now. Hope these tips helps to give some ideas for mommies out there to have a little break. Stay safe everyone!